If you suffered losses exceeding $100,000 investing in Paycom securities between February 9, 2022 and November 1, 2023 and would like to discuss your legal rights, call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310). You may also click here for additional information: www.faruqilaw.com/PAYC.
There is no cost or obligation to you.
NEW YORK, Dec. 27, 2023 (GLOBE NEWSWIRE) — Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential claims against Paycom Software, Inc. (“Paycom” or the “Company”) (NYSE: PAYC) and reminds investors of the January 9, 2024 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
Faruqi & Faruqi is a leading minority and Woman-owned national securities law firm with offices in New York, Pennsylvania, California and Georgia.
As detailed below, the complaint alleges that the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose that: (1) Paycom had been relying upon a significant, but undisclosed, amount of one-off payroll correction fees to fuel its outsized revenue growth; (2) increased adoption of Beti by Paycom’s payroll customers was cannibalizing the fees Paycom had previously been charging to correct common payroll mistakes and to provide related services; and (3) the increased Beti adoption was decreasing Paycom’s gross profit margins.
Paycom introduced its Beti product in July 2021. Beti is an automated payroll processing system that gives employees the option to do their own payroll, including reviewing and updating payroll errors.
On October 31, 2023, Paycom reported its Q3 2023 financial results, which disclosed disappointing Q3 revenues, revenues guidance for Q4 2023, and an initial 2024 outlook for 10% to 12% revenue growth. Paycom’s reported financial results fell significantly below consensus estimates. At the earnings call, Chief Financial Officer Craig Boelte explained that the Beti product has rendered some of the Company’s existing offerings non-essential. As a result, customers have stopped purchasing Paycom’s other services and billable items, which has affected the Company’s revenues.
On this news, the price of Paycom shares declined by $94.28, or approximately 38.49%, from $244.97 per share to $150.69 on November 1, 2023.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding Paycom’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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